Japan's Nikkei Stock Average Shares Slide Most in Almost Four Months on US Economic Concerns
The Nikkei 225 Index of shares .N225 sank 1.8% and was set for its steepest decline since April 11. The broader Topix .TOPX declined 1.5%, with a sub-index of bank stocks .IBNKS.T plunging 4.2%.
U.S. shares fell sharply on Friday after data showed that the world's largest economy created fewer jobs than expected in July and a new round of punishing U.S. tariffs cast a shadow on global trade.
On the home front, speculation grew that Prime Minister Shigeru Ishiba might resign after last month's election defeat.
Ishiba has consistently denied plans to step down after his ruling coalition lost its majority in the upper house of parliament, but pressure from within his Liberal Democratic Party is mounting.
'We had very weak job market data in the U.S. and sentiment among investors has darkened,' said Kenji Abe, chief strategist at Daiwa Securities.
'There is some chance that Prime Minister Ishiba may be forced to step down, so I think that's one thing we should watch.'
There were 34 advancers on the Nikkei against 189 decliners. The biggest loser was Credit Saison 8253.T with a drop of 8.2%, followed by Yamaha 7951.T, which sank 7.9%.
The U.S. Labor Department said the country added 73,000 nonfarm payrolls last month, below economists' expectations, while June's job growth was revised sharply lower.
Tariffs that U.S. President Donald Trump imposed last week on dozens of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said.
The tariffs include a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland.
Among the few gainers on the Nikkei, chip maker Socionext 6526.T rose the most, up 3.9%, followed by optics company Hoya 7741.T, which advanced 2.7%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Today
an hour ago
- Japan Today
Japan presses Lutnick to implement agreed cut to U.S. auto tariffs
Japan's chief tariff negotiator Ryosei Akazawa on Wednesday held talks with U.S. Commerce Secretary Howard Lutnick, urging him to implement as early as possible an agreed cut to tariffs on Japanese car and auto part imports, according to the Japanese government. During a meeting in Washington that lasted about 90 minutes, Akazawa and Lutnick confirmed the importance of a recent bilateral trade deal and efforts to steadily carry out initiatives that will be in the "interests of both countries," the government said. It said Akazawa also asked Lutnick to make sure the United States puts the terms of the deal into practice as agreed by both sides. Akazawa's visit for his ninth round of talks with U.S. cabinet members comes two weeks after he and U.S. President Donald Trump struck the deal, under which his administration committed to lowering the so-called reciprocal tariff rate on Japanese goods, due to take effect on Thursday, to 15 percent from the threatened 25 percent. At that time, Trump also agreed to cut auto tariffs to 15 percent for Japan in exchange for a promise to invest massively in the United States. However, unlike the country-specific tariff rate, it remains unclear when the Trump administration plans to implement the lowered auto tariffs. Akazawa, Japan's minister for economic revitalization, is scheduled to stay in the U.S. capital through Friday and may also hold talks with Treasury Secretary Scott Bessent. © KYODO
Japan Today
an hour ago
- Japan Today
Honda forecasts drop in profits despite strong U.S. auto sales
FILE - This Feb. 14, 2013, file photo shows a Honda logo on the trunk of a Honda automobile at the Pittsburgh Auto Show, in Pittsburgh. (AP Photo/Gene J. Puskar, File) By YURI KAGEYAMA Honda's profit in the last quarter was half of what it was a year earlier, the company said Wednesday, as automakers were hit by 25% tariffs on vehicle exports to the United States. The Japanese automaker reported Wednesday that its April-June profit totaled 196.7 billion yen, about half of what it earned during the same period the previous year at 394.7 billion yen. Quarterly sales edged 1.2% lower to 5.3 trillion yen. The Tokyo-based maker of the Accord sedan and Asimo robot revised upward its profit forecast for the full fiscal year through March 2026 to 420 billion yen, better than its earlier estimate of 250 billion yen. The improved projection still marks a 50% drop from the previous year's results. Honda stuck to its forecast to sell 3.62 million vehicles worldwide in this fiscal year. It said its motorcycle business in Brazil and Vietnam was solid, while North American car sales also remained strong despite headwinds from the tariffs. The negative impact of the tariffs was estimated at about 450 billion yen ($3 billion), based on 'a detailed review,' according to Honda. The company's auto sales declined year-on-year in Japan, the rest of Asia and Europe. Honda's quarterly global auto sales totaled 839,000 units, down from 869,000 the same period last year. Honda also said it posted a one-time expense related to electric vehicles, such as losses related to EVs sold in the U.S. and write-offs for lineup changes. Eiji Fujimura, Honda's chief financial officer and director, welcomed an agreement between the U.S. and Japan to cut an initially planned 25% tariff on imported autos to 15%. That will work as 'a positive' for the company's business, customers, suppliers and shareholders, he said, even if it's higher than the original level. Fujimura stressed that Honda has long tried to promote free trade and fair competition around the world to deliver quality products and, in his words, 'contribute to the local community.' 'Now we must face up to this new normal,' he told reporters. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Nikkei Asia
an hour ago
- Nikkei Asia
Shiseido to cut 300 US jobs as acquired skin-care brand struggles
Shiseido executives outlined U.S. restructuring plans at a press conference on Aug. 6. (Photo by Jyo Chou) RYOTA NISHIYAMA and JYO CHOU TOKYO -- Shiseido's net profit for January-June improved from last year thanks to restructuring in Japan and China, the Japanese cosmetics maker said Wednesday, but continued struggles at a U.S. subsidiary are triggering a new shake-up including job cuts.
